Windflow Technology calls time on turbine manufacturing

David Iles, a US shareholder of Windflow Technology who bankrolled its UK activities, will take control of the unprofitable turbine maker and forgive some $21 million of loans in exchange for the company's UK subsidiaries.

The announcement was made with Windflow's annual results, which showed a wider loss of $4.3 million in the year ended June 30 and an acknowledgment that its seven-year investment in the UK market "has not paid off", with the eight turbines in operation far below expectations and sales generated not enough to cover the company's overheads as a turbine manufacturer.

Annual sales were $606,000, excluding revenue from discontinued operations of about $1.1 million from the UK, up from $363,00 a year earlier. Faced with negative equity of $7.3 million (up from $2.8 million a year ago) as a result of its accumulating loan liabilities, which has hindered Windflow's ability to enter new long-term business relationships, the company has entered a conditional agreement with Iles that will allow it to repay the........